Embracer Group AB (OTC:THQQF), the Swedish gaming conglomerate, is undergoing a split into three distinct companies: Asmodee Group, Coffee Stain & Friends and Middle-earth Enterprises & Friends.
Shares of the company known for owning rights to popular franchises like Tomb Raider and The Lord of the Rings, surged by up to 18% upon opening trading in Stockholm following the announcement.
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Under the plan, Asmodee Group will oversee tabletop games publishing and distribution, with an anticipated listing within the next 12 months.
Meanwhile, Coffee Stain & Friends will focus on indie and free-to-play games for various platforms, with a stock listing expected in 2025. Shareholders of Embracer Group AB will receive shares of both companies as a dividend.
In a blog post, Embracer’s CEO, Lars Wingefors, stated: “This move towards three independent companies reinforces Embracer's vision of backing entrepreneurs and creators with a long-term mindset, allowing them to continue to deliver unforgettable experiences for gamers and fans across the globe.”
The changes follow Embracer’s aggressive “restructuring” efforts subsequent to losing a $2 billion partnership deal last year.
“This move has been made with the intention to unleash the full potential of each team and provide them with their own leadership and strategic direction.” This action includes shutting down projects, global layoffs, and thesale of Gearbox to Take-Two Interactive Software Inc (NASDAQ:TTWO).
In summary, the breakdown of the new companies is as follows:
- Middle-earth Enterprises & Friends, previously Embracer Group, will focus on AAA game development and publishing, retaining ownership of IPs like Tomb Raider and The Lord of the Rings.
- Asmodee Group will center on tabletop games, including established titles like Ticket to Ride and developing licensed games based on popular franchises such as Marvel and Star Wars.
- Coffee Stain & Friends will concentrate on indie, mid-market, and free-to-play games, with properties like Goat Simulator and Valheim.
Wingefors expressed his commitment to the new entities as an active, committed, and supportive shareholder, envisioning an “evergreen horizon.”
Price Action: Embracer Group is currently trading at $2.52, up 8.15% in the past 24 hours, according to Benzinga Pro.
Read Next: Embracer Signals Further Layoffs: 1,387 Job Cuts Only The Beginning
Photo: Chase D’animulls via Shutterstock
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